IID, Inc. (6038) AI Stock Analysis

• Market Cap: ¥4.41B
• Dividend Yield: 2.38%
• Average Volume (3M): 4.24K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.22
• Revenue Growth: -2.25%
• EPS Growth: 116.29%
• Country: JP
• Employees: 227
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 5,062,600
• 10 Day Avg. Volume: 4,150
• 30 Day Avg. Volume: 4,240
• PEG Ratio: 0.17
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 9.85
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥947.00 ▼(-4.05% Downside)
• Action: Downgraded Date: 03/24/26
• Date: Action: Downgraded 03/24/26

The score is driven by a solid financial base (notably low leverage) and supportive valuation (moderate P/E with a ~2.44% dividend), partially offset by weak technicals showing a bearish trend and soft momentum.

Positive Factors

Balance sheet health

Low leverage and steadily growing equity provide durable financial flexibility. A conservative capital structure reduces refinancing and interest risks, enabling the company to fund operations, invest selectively, or sustain dividends through cyclical advertising demand over the next several months.

Free cash flow generation

Consistent positive free cash flow that closely tracks earnings supports internal funding for capex, dividends and working capital. This persistent cash generation improves resilience and strategic optionality, making the business less reliant on external financing in a 2–6 month horizon.

Gross margin stability

Stable mid-40% gross margins indicate structural pricing power or cost control in core services. That margin base helps preserve gross profitability if revenues soften and supports operating leverage recovery once demand stabilizes, aiding sustainable earnings generation.

Negative Factors

Revenue growth weakness

Stagnant to slightly negative top-line reduces scope for operating leverage and constrains reinvestment. Persistent revenue weakness over several reporting periods suggests demand or market-share challenges that could limit sustainable earnings and cash-flow expansion in the medium term.

Cash flow volatility

Material year-to-year swings in operating cash flow reduce predictability for capital allocation and dividend sustainability. Volatility raises the risk that short-term funding needs or timing mismatches could force trade-offs between investment, payouts, or balance-sheet repair over coming months.

Profitability compression

Declining operating margins and moderated returns on equity signal reduced operating efficiency or pricing pressure. This erosion narrows the buffer against cyclical downturns and limits long-term return improvement, making earnings more sensitive to revenue swings and cost pressures.

IID, Inc. Business Overview & Revenue Model

IID, Inc. Financial Statement Overview

Summary

Financial profile is solid but uneven: low leverage and steadily growing equity support stability, while revenue has recently turned slightly negative and profitability/cash flows have been volatile despite a net margin rebound in FY2025.

Income Statement

Revenue has been essentially flat over time, with growth turning slightly negative most recently (-2.61% in FY2025). Profitability is mixed: gross margins are steady around the mid-40% range, but net margin is volatile—improving sharply in FY2025 (~5.1%) after a weak FY2024 (~2.7%), yet still below the stronger FY2021–FY2022 levels (~8–9%). Operating profitability has also compressed from the FY2022 peak (EBIT margin ~11.5%) to mid-single digits to high-single digits more recently, suggesting some cost pressure or normalization after prior highs.

Balance Sheet

The balance sheet looks conservatively financed with low leverage: debt-to-equity remains modest (~0.12 in FY2025) and has generally stayed below ~0.18 across the period. Equity has grown steadily over time, supporting financial flexibility. Returns on equity are positive but have moderated from earlier highs (FY2021–FY2022) to mid-single digits in FY2024–FY2025, indicating profitability is no longer as strong as it was, even though the capital structure remains healthy.

Cash Flow

Free cash flow generation is consistently positive and generally tracks earnings well (free cash flow running at ~83%–98% of net income in FY2022–FY2025). However, cash flow is volatile year-to-year: operating cash flow dropped meaningfully in FY2025 versus FY2024, and free cash flow growth has swung between strong increases and declines. Overall cash conversion quality is decent, but the variability reduces confidence in near-term consistency.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	6.08B	6.13B	6.07B	5.57B	5.41B
Gross Profit	2.76B	2.75B	2.71B	2.53B	2.45B
EBITDA	612.87M	679.13M	717.21M	695.87M	525.88M
Net Income	307.99M	163.15M	280.20M	450.76M	464.63M
Balance Sheet
Total Assets	6.25B	6.27B	5.66B	5.18B	4.74B
Cash, Cash Equivalents and Short-Term Investments	3.60B	3.61B	2.84B	2.91B	2.93B
Total Debt	546.41M	819.57M	508.56M	316.13M	382.38M
Total Liabilities	1.61B	2.00B	1.49B	1.35B	1.29B
Stockholders Equity	4.56B	4.20B	4.06B	3.76B	3.39B
Cash Flow
Free Cash Flow	461.20M	805.79M	330.63M	636.10M	335.99M
Operating Cash Flow	491.56M	826.98M	353.67M	646.65M	375.82M
Investing Cash Flow	-87.30M	-292.54M	-159.46M	-514.20M	157.06M
Financing Cash Flow	-421.48M	217.72M	-266.15M	-173.00M	355.87M

IID, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 987.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6038, the sentiment is Negative. The current price of 987 is above the 20-day moving average (MA) of 921.40, above the 50-day MA of 944.06, and above the 200-day MA of 936.77, indicating a bearish trend. The MACD of -11.93 indicates Positive momentum. The RSI at 34.65 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6038.

IID, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6535	75 Outperform	¥27.46B	3.66	―	5.35%	58.08%	29.89%
6038	61 Neutral	¥4.41B	11.16	―	2.38%	-2.25%	116.29%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
7069	60 Neutral	¥3.07B	7.59	―	―	-4.44%	―
2122	59 Neutral	¥8.87B	12.89	―	2.61%	11.84%	246.10%
2491	57 Neutral	¥13.54B	29.59	―	7.85%	-3.20%	34.08%
6094	50 Neutral	¥12.09B	2.40	―	―	-2.68%	91.68%